Supplementary pension saving contributions are deducted from your salary before taxes. Supplementary pension savings used to pay off a mortgage or as a down payment for real estate are not taxable. However, regular payouts, i.e. after the age of 60, are taxed like salary payments.

Capital gains tax is not collected on your returns during the savings period.

Inheritance tax is not collected on supplementary pension savings upon a fund member’s death.

Yes, you can change your investment option and request a transfer of your current assets.

1. It is easiest to do this by going to Landsbankinn’s fund member website and selecting a different investment option there.
2. You can also book an appointment with an advisor or contact us by calling +354 410 4040.

Transfers are made twice a month, on the 10th and 25th of each month, and requests must be received at least 5 days prior to the transfer date. You may transfer savings between Landsbankinn's investment options twice in each 12-month period. There is no charge for transferring supplementary pension savings.

Yes, if you are a salaried worker in Iceland, you are free to pay into supplementary pension savings.

Those who are party to the collective wage agreements between the Icelandic Confederation of Labour (ASÍ) and the Confederation of Icelandic Employers (SA) can allocate 3.5% to so-called designated private pension savings, which are inheritable like other private pension savings. Designated private pension savings are redeemable from the age of 67, but equal periodic payments from the age of 62 can be requested.

Payments from supplementary pension savings do not affect basic pension from the Social Insurance Administration, although payments of supplementary benefits may be affected. We encourage you to contact the Social Insurance Administration if you have any concerns.

When you start a new job, your supplementary pension savings are not transferred automatically. That's why you have to register your new employer to continue your supplementary pension savings.

You can edit your contract and update your employer on the welcome page at sjodfelagar.landsbankinn.is. You can also e-mail us at vl@landsbankinn.is to notify us of your new employer.